Importance of growth rate

Now growth rate being positive is a good sign, only if it is consistent and stays near about the initial observed value.

However, the same growth rate for a long period of time indicates no progress.

And if the growth rate is negative or declining over a certain period, it’s a big reason to worry.

Hence user growth rate indicates whether all the sales and marketing efforts you put are in vain or not. If there’s a downfall in the growth rate in a certain timeframe one can estimate the reason for the decline.

You need to alter your strategies, work hard, motivate your team to reach their goals.

Sometimes environmental, political, social issues also affect the growth momentum.

Top 3 scalable ways to improve growth

For continuous growth, you need to focus on the three scalable channels discussed below.

1. Acquisition through ads

You can acquire users through paid advertising but within reasonable margins after considering other costs. Paid advertising can earn you a revenue which you can re-invest again in advertising for scalability.

2. Word of mouth

Sometimes a product does have a ‘X’ factor which differentiates it largely from its competition. Therefore you can leverage that factor in your promotions. It can make your product go viral and with this effect, you can earn a lot from the word of mouth publicity. Try to ascertain one unique quality of your product.

3. Search engine optimization

Search engine optimization by large plays a vital role in generating leads that convert to customers. Publish rich and easy to follow content on a consistent basis. Making search engine optimized content on regular basis can get you continuous flow of leads.

7 unscalable ways to improve growth rate

On the flip side, there are some unscalable practices which take place usually in case of a startup. Let’s look at them and see to what extent they are effective.

All of these unscalable ways to promote and scale your business are low- risk factors.

In business dynamics, there is one belief which is true to a large extent i.e ‘The higher the risk, the higher the returns’. If you look at all the seven ways above, they are all low-risk ways that you can get a few hundred sign-ups from contests, one or two coverage in the media but it is all one time.

For continuous growth, you need to strike a balance between high risk and low-risk investments.

Conclusion

In the end, we can ascertain that growth is all that matters to the business and tracking user growth rate continuously can become challenging at times. You can make this job a way lot easier with the help of Putler. You can view different business metrics along with the user growth rate in a single dashboard.